To add insult to injury, they don't even bother showing the movies and shows that they lock up this way. It's just about exercising monopoly power.
If the VPN node's public IP matches the country in the subscriber's registration details, then it seems pretty unfair that they'd still restrict their account when accessed from that VPN IP. But I suppose from a technical standpoint it's probably far simpler for them to just find VPN IPs/subnets, add them to a database, and restrict content for any account accessed from any of those IPs, regardless of the account, IP, or content regions.
Suppose you are Canadian. Netflix has permission to sell Americans "Media Package A" and Canadians "Media Package B". They don't have permission to sell Canadians "Media Package A". You are saying "just let me buy both" but Netflix does not have permission from media companies to sell you both.